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SWOT analysis example - Mercedes

Many people consider Mercedes to be one of the most popular car brands in the world. This is easily recognisable with a star that never ceases to seduce car enthusiasts. Known for its amazing performance, Mercedes is a German brand founded in 1926 by Karl Benz.

SWOT analysis example - Mercedes

Credit Photo : Mercedes Benz

Since its inception 95 years ago, Mercedes has gained recognition around the world.


Mercedes is a benchmark within the automotive industry and is one of the most famous car manufacturers (BMW, AUDI) with a strong product portfolio and a considerable number of products sold worldwide that allow it to compete with other competitors. In addition, Mercedes is very focused on events such as Fashion Week and sponsorship, particularly in sports such as tennis and golf. In 2014, the brand won the title of the best team at the car manufacturers' championship.
On the other hand, its factories and manufacturing sites are also a considerable force. Indeed, the brand has many manufacturing sites in 26 countries spread around the world. Whether building buses or cars, its facilities allow it to minimise operating costs and generate better profits. Moreover, with the financial stability of the parent company "Daimler", the various subsidiaries use shared resources which also allow them to reduce operating costs.
When it comes to innovation, this is one of the main strengths of the Mercedes brand as it plays an important role in product development. The Daimler company is known for its technological performance, which has enabled it to penetrate the luxury car and truck market, in particular, for the safety provided by the brand.
Finally, Mercedes has been able to seize opportunities by being present in developing countries. You should know that the brand is the leader of the developing market, and that is why other brands such as Audi and BMW are following it in these countries. This is a point where it can stimulate is growth.


One of the main weaknesses of the Mercedes business is after-sales service. Indeed, maintenance can be very expensive, and it is an essential factor in the purchase of a vehicle. The after-sales service offered by Mercedes is much more expensive than that of other players in the automotive industry.
Then, you should know that sometimes, the objectives of the parent company are not the same as those of the companies of the group. The goals are often contradictory, and this can impact the individual brand.

Finally, we can cite as a last weakness: distribution. It is true that the Mercedes business is growing very quickly. However, due to the exclusive distribution of its vehicles, the brand's supply and value are affected and its growth delayed.


Although the European market and the American market are the main markets of the automotive industry, the Asian markets like India and China, as well as other countries in Asia, must also be exploited due to the economic stability and increase in income.
In addition, the demand for luxury cars continues to grow. Other companies such as BMW, Audi and Volvo are targeting and betting heavily on developing countries. In these countries, the transport system is improving with luxury means of transport.

The strong growth of the automotive industry is also an opportunity for Mercedes. Indeed, nowadays, vehicles have become indispensable in people's lives. They make it easier to move around, go to work and provide access to a better life (markets, doctors, jobs). A century ago this facility would have been unimaginable. The automobile is an industry that represents economic growth and a certain freedom. In addition, with technological advances, ecological cars are appearing more and more. This opportunity will allow Mercedes to conquer the automotive market worldwide.

One can conclude with strategic alliances that are also an effective strategy for companies such as Mercedes. By partnering with other companies, Mercedes can create offers that will further differentiate them.


The auto industry is saturated with players such as BMW, Audi, Volvo and other brands. There are many automakers who are working hard to become market leaders.

Beyond the stiff competition present in the market, there are also factors such as fuel price volatility. Indeed, this factor plays an important role in the growth of the Mercedes business. In addition, the subject of fuel is also accompanied by government laws, including CNG and Shell gas. Moreover, in terms of government regulations, these include many laws related to global warming, vehicles and driver's licenses. Some countries have already implemented certain policies, and this affects the automotive sector.


- Recognised brand,
- Strong product portfolio
- Facilities and manufacturing sites
- Innovation
- Presence in developing countries


- Expensive maintenance
- Conflicting objectives
- Exclusive distribution


- The Asian market
- The demand for high-end cars
- The strong growth of the automotive industry
- Strategic alliances


- Tough competition
- The volatility of fuel prices
- Government regulations